Contents of this page include: Maslow Hertzberg Elton Mayo Handy Mcgregor theory X and Y Ouchi theory Z Lean

Z Lean and mass production

Maslows hierarchy of needs:

Maslow showed how an individuals emphasis on needs moved from basic to the higher needs. The needs at the bottom must be satisfied to move at the higher ones. Needs do not have to be completely satisfied before higher needs emerge, a sufficient level of satisfaction is acceptable as opposed to the maximum or optimum level. Maslows theory may be summarized and simplified by saying that everyone wants certain things throughout life, and these things can be placed in five ascending categories namely: Basic or physiological needs: the things needed to stay alive: food, shelter and clothing. Such needs can be satisfied by money.

Safety or security needs: people want protection against, unemployment, retirement as well as being safeguarded against unfair treatment. These needs can be satisfied by the rules of employment i.e pension scheme, sick fund, employment legislation. Social needs: the vast majority of people want to be part of a group and it is only through group activity that this need can be satisfied. Thus it is up to the organization to make the employee feel part of a group. Ego or Esteem needs: e.g. can include employee being asked to lead a group in a project. This enables the employee to think well of himself and in his abilities. This can be satisfied if the say or suggestion of the employee is taken into account and/or he is asked to lead or be part of an important task. Self-actualization or self-fulfillment needs: this is quite the need to achieve something worthwhile in life. It is a need that is satisfied only by continuing success, for example opening and running a new office. EVALUATION OF MASLOW: The significance of maslows hierarchy of needs is that if underlines the relative importance of money. Status gives little satisfaction to a person desperate for food and shelter. On the other hand it demonstrates that money alone is not enough, and indeed as basic needs are satisfied people are likely to concentrate their attentions on social and ego needs.

Herzbergs theory of motivation:

Herzberg attempted to find out what motivated people at work. He developed the two-factor theory that was based on the idea that motivation is based on two needs, namely hygiene factors and motivational factors. Hygiene factors: are those that have to do with non-job related features such as the working environment.

Motivational factors: are those concerned with a need for personal development. CAUSES

HYGIENE

MOTIVATION

Hygiene factors: factors that need to be met to prevent dissatisfaction. Will not motivate in themselves, they are concerned with extrinsic factors associated with the job itself but are not directly a part of it. The important fact to remember is that attention to these hygiene factors prevents dissatisfaction but does not necessarily provide positive motivation. Pay Conditions Company policy Relationships with higher levels, such as management Treatment at work Inability to develop Feelings of inadequacy Motivators: factors which motivate: the main motivation factor are not in the environment but in the intrinsic value and satisfaction gained from the job itself. Motivation factors include: Sense of achievement Chance of promotion Chance of improvement Recognition of effort Responsibility Nature of job itself

Elton Mayo (Hawthorne Studies)

Mayos most important contribution was to identify the basis of work satisfaction as non-economic and to connect it more with the interest taken in the workers performance than with the financial reward. Okay heres what happened in plain simple words: A test was conducted on 6 women which lasted for five years The test was conducted so as to observe the effect on output and morale of various changes in working conditions. Initially, an incentive payment scheme was introduced; then rest periods in different forms. Changes were made in the hours of work etc. CONCLUSION: it was found that whatever changes were made including a return to the original conditions, output still rose! The output recorded over time kept on increasing. Evaluation: it was apparent that the changes in working conditions could not account for the increase in output this was due to the enhanced work satisfaction that the girls enjoyed, the development of personal friendships, and a new social atmosphere, which brought a marked change in their attitude towards work.

Mcgregors theory X and theory Y:

Theory X Workers are motivated by money Workers are lazy and dislike work Workers are selfish, ignore the needs of organizations, avoid responsibility and lack ambition Workers need to be controlled and directed by management Theory Y Workers have many different needs which motivate them Workers can enjoy work If motivated, workers can organize themselves and take responsibility Management should create a situation where workers can show creativity and apply their job knowledge

Mcgregors theories: Theory X: assumes that people dislike work and responsibility. Therefore they must be coerced, controlled, directed or threatened with punishment to get them to make an effort towards achievement of organizational objectives. However modern employment laws have made this difficult for

managers. For this reason a carrot approach is used. People have to be persuaded to carry out tasks by promises or rewards. In many ways this is similar to Taylors view. Theory Y: assumes that most people are motivated by those things at the top of Maslows hierarchy. In other words, people are responsible, committed and enjoy having control over work. Most people, given the opportunity, will get involved in work and contribute towards the solution of a problem that may arise. IN OTHER WORDS: THEORY X is pessimistic and rigid. Control is primarily external i.e. imposed on the subordinate by the superior. THEORY Y is optimistic, dynamic and flexible, with an emphasis o selfdirection and the integration of individual needs with organizational demands.

Ouchi theory Z
In theory Z there is an emphasis on the interpersonal skills that form the basis of group working, where decision making is by consensus, but responsibility remains with the individual. There is emphasis on building trust through informal and democratic relationships. The characteristics of the theory z organizations are: Long term employment Slow evaluation and promotion Moderately specialized careers Consensual decision making Individual responsibility- this could mean giving greater responsibility lower down the line Concern for the employee

LEAN PRODUCTION

Lean production is divided into the following sectors: Kaizen Just in time manufacturing Time based management Empowerment Teamworking Kaizen is perhaps the most concept in Japanese management. It means continuous improvement. In western businesses productivity remains the same for long periods of time, then suddenly rises. The increase is followed by another period of stability, before another rise. Increases in productivity may result from new working practices or new technology. The dotted line below shows the Japanese approach. Improvements are continuous. They result from changes in production techniques.

the kaizen is said to be an umbrella concept. A wide range of different production techniques and working practices must be carried out for it to be effective. These include: Zero defect policies Total quality management Quality control circles Automation Just in time

It is difficult for workers in the business to look for continuous improvement all the time. In order to solve this problem a system was introduced namely PDCA (plan, do, check, action) Plan: business must identify where improvement is needed. Data must be gathered and used to develop a plan which will result in improvement. Do: once the plan has been finalized it must be carried out. Check: the next stage in the cycle is to check whether or not there has been an improvement. Action: if the plan has been successful, it must be introduced in all parts of the business.

Just in time manufacturing: JIT: just in time manufacturing is an important part of lean production. It is
defined as for example in any manufacturing and selling organization: raw materials being delivered JIT to be made into parts, parts were delivered JIT to be made into goods and goods were produced and delivered JIT to be sold. Advantages: It improves cash flow as money is not tied up in stock The system reduces waste Since no stock is held the excess factory space can be used for something else Links with and the control of suppliers is improved Disadvantages: A lot of faith is placed in the reliability and flexibility of suppliers Increased order costs Advantages of bulk discounts is lost Difficult to cope up with sharp increases in demand

Time-based management:

Time based mgt involves reducing the amount of time businesses take carrying out certain tasks, such as launching new products or cutting lead times in production. Time based mgt is a feature of lean production because it involves eliminating a type of waste i.e. time. Advantages: Customers will benefit. A wider range of products will be available and there will be faster delivery times. Increased efficiency will benefit the company by improving its image in the eyes of the people The time spent on range of production tasks is reduced. This helps to improve productivity and reduce unit costs. Empowerment: Empowerment involves giving employees the power to make decisions in a business. The aim of empowerment is to give employees more control over their own work conditions. Businesses have now learnt that efficiency will improve if workers are given the opportunity to involve themselves in decision making. Workers will be better motivated and the business may gain from the creativity of its workers. Empowerment is not without difficulties. Some workers may not be able to make their own decisions and training may be required to teach them such skills. Mangers may resent giving up authority. Some staff may even abuse their power to make decisions. Team working: A growing number of businesses are introducing team working. This involves dividing the workforce into fairly small groups. Each team will focus on particular areas of production and team members will have the same common aims. Effective teamworking requires cooperation between workers and management. Both the business and employees can benefit from team working. Workers should develop relationships with colleagues and a team spirit which may improve motivation and productivity. Flexibility will improve. For example team members might be more willing to cover for an absent colleague. MASS production